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Sunday, November 30, 2014

Khazanah Research Institute has released ‘The State of Households’ report which sheds light on problem areas including housing, food, education, salaries and BR1M, among others.

FOR Khazanah Research Institute (KRI) managing director Datuk Charon Mokhzani, one of the most surprising things he and his team found while doing research on the state of households in Malaysia is how much data is already there.

“You wouldn’t know if you never looked. There are all kinds of data publicly available,” he says in an interview.

So with its focus on the “pressing issues of the nation”, KRI pored through data and information from various government departments, ministries and bodies such the Department of Statistics, Economic Planning Unit, Education Ministry, EPF, Fama, Bank Negara, World Bank, and Demographia to come up with its 68-page “The State of Households” report.

KRI was set up about a year ago and its objective is to carry out data-driven analysis and research on “pressing issues of the nation” and come up with policy recommendations to the government.

The State of Households report is its first.

“We managed to do it in less than six months. It gives a broad picture of the state of households – an overview of where we are,” says Charon.

Dr Kuppusamy Sigaravello from Universiti Malaya’s Faculty of Economics and Administration, who read sections of the report, thinks it is “well presented in a graphical way” that would help the layman understand it.

“It’s the new way forward to explain things easy,” he says.

A number of facts in the report are quite revealing.

For example, only 10.4% of the country’s working population have a degree, while the “vast majority” are not educated beyond Form Five! So the vast majority work at lowly-paid jobs.

Real median household income in the country grew by 19% between 2009 and 2012 and the median monthly salary for individuals in 2013 was RM1,700 a month.

(Median income is different from average income. With average, you total up the incomes and divide it by number of people. With median income, it is the half-way mark you get, if you list down all incomes from lowest to the highest and take the mid-point figure where half would be earning more and half earning less. Median is seen as a fairer assessment than average.)

The report also shows up huge disparities in income and spending patterns in the country.

About 74% of households in the country earn less than RM6,000 and of this, 23% take home less than RM2,000; and that only 4% of active EPF members make more than RM6,000 a month.

The report also highlights wealth inequality in the country.

At one end, there are 38,000 Malaysian millionaires, wealthy Malaysians are buying million ringgit houses and luxury cars, Malaysians were the fourth largest buyers (4%) of newly built property in London in 2012, and are the top buyers of homes in Singapore.

At the other end of the spectrum, there are people who earn low wages and have no savings, who buy their electrical appliances and furniture on interest-based instalments and end up paying as much as a quarter of the purchase price in interest alone, who are really affected by rising food and utilities prices, and the poorer households are able to afford only RM55 a month or RM1.83 a day on meat.

Charon says KRI will be doing a more in-depth study on food soon to see how to bring prices down.

“If Malaysian food prices are not following world food prices, then we want to know why, and if there is a good explanation for it or if there is a monopoly or middle man involved.

“People always blame the middle man. We don’t have the data yet to tell you if there is a middle man. This is something we are looking to find out.

“There are permits for food importation and incentives for different types of food, and we want to look at all that and see what needs to be changed so that we can bring food prices down to as low as possible.”

He, however, points out that if world food prices go up, Malaysia would not escape the price rise.

“What we want to get away from is that if world prices go up by a little bit, should our food prices go up many times?”

UM’s Dr Kuppusamy thinks it is “simply nonsense” when the government says it can control the price of food.

“Most food are value added along the food supply chain and whether you want it or not, it is also related to the price of fuel and other inputs because food has to be transported and the workers, including those transporting food products, have to be paid,” he says.

He adds that enforcement of price control in the country is poor and done only occasionally and reactively.

“Government enforcement goes ‘off’ about a month after some controls,” he says.

The KRI report also estimates that less than 23.8% or RM5.6bil of the entire fuel subsidy went to households in 2013 while the remaining RM17.9bil went to corporations, businesses and elsewhere.

In calling for a removal of the “blanket subsidies”, the KRI report favours targeted cash transfers like BR1M to help cushion the impact for the lower income group.

“If you want to help people, then decide who you want to help and give them the help. But don’t do it in a wasteful way through blanket subsidies for all. Subsidies encourage wasteful behaviour, smuggling and all kinds of bad behaviour. People are wasteful if things are cheap. If we stop subsidies then people will be less wasteful,” says Charon.

Dr Kuppusamy is all for removing subsidies and assisting those in need with cash transfers like BR1M “if the method to identify the target group is implemented correctly.”

He says the recent move to remove fuel subsidies is the right move, but thinks “the way it has been done is too fast and too soon”.

“Prices of goods have escalated way before the targeted removal of such subsidies. In real terms, the government gains but the rakyat loses faster than the government can react to help those who need help,” he stresses.

He points out that removing the sugar subsidy does not “hit people that much” compared to the fuel subsidy which affects almost everyone on the ground.

“I expected a gradual removal of the fuel subsidy. However, the rich seem to be ‘punished’ for earning more through high tax while the poor is ‘released’ tax-free.”

What this means, he says, is that the rich end up having to pay more for goods especially at the higher end.

The KRI report also touches on the tough housing problem people are facing in the country.

The report states that affordable housing should cost three times the annual median income, but in Malaysia prices are 5.5 times the annual median income.

This makes houses here, in median income terms, more expensive than in the United Kingdom (4.7 times), United States (3.5 times), Ireland (2.8 times) or even Singapore (5.1 times).

The profit margin of property developers in Malaysia too is high at 21%, which is almost double that of the US (12%), the UK (17%) and Thailand (14%).

UM’s Dr Kuppusamy says he actually expected the profit margin of Malaysian property developers to be higher than 21% because housing is purely business and “driven by the private provision of goods”.

Charon says KRI came up with these numbers by going to Bloomberg and having a look at the profit margin of all housing developers in the country and comparing it with the listed property developers in other countries.

And, as affordable housing is now one of the main concerns here, KRI will be doing an in-depth study to see if and how prices can come down.

“There are three elements which are the cost of land, the cost of building the house and financing it, and we are looking at how to lower these.

“Maybe it can be through better technology or maybe there is anti competition in the construction supply chain so the price of cement and other supplies are higher than it should be,” says Charon.

There are many other interesting findings in the report including the ethnic, gender and urban-rural disparity in income, the number of luxury cars sold in 2013, high level consumption of households (98% own a television set, 95% have mobile phones, 91% have washing machines,78% have cars, 57% subscribe to Astro, and 39% have Internet subscription.)

Despite the fact that 74% of the households get less than RM6,000 a month currently, Charon believes Malaysia is still on track to becoming a high income developed nation by 2020.

He says efforts are being made for people to have more disposable income and better purchasing power through higher incomes with better jobs and reducing food, household and transport prices.

“You can’t change the economy tomorrow but you can change it over time,” he says.

Tuesday, November 18, 2014

THEY are brave. They are bold. And they are young. Meet the pioneer group of Young Moderates who will be sharing their views on a regular basis in Sunday Star in the next phase of our Voices of Moderation campaign.

They are among the many young Malaysians who believe that we should all stand up and speak up for moderation.

They, too, are essentially fed up with politicians and political wannabes who play the racial and religious cards in multi-racial Malaysia.

They want a future that is good for everyone. But they will argue their cases logically and with the right decorum.

We are happy to provide the space for these young people to share their views on what they see of our country today, and their hopes for her future.

This column will run together with our campaign to bring the message of moderation to the campuses.

“Our Brave Views, Bold Ideas campaign has endeared us to many Malaysians. They have commended our media group’s stand – that is to stand up for moderation,” he said.

Wong is encouraged that many like-minded partners are supporting The Star to spread this message to the younger generation.

“This is not just about the older citizens looking back at the good old days. We know that the younger citizens are just as concerned about where the country is heading, and they want to speak out to drown the voices of racial and religious extremists.

“I am glad that these pioneers are willing to step forward to make a difference,” he said.

The pioneers are:

Dina Murad is a former literature student turned rookie journalist who enjoys reading and writing about Good Samaritans. She also appreciates the little things in life – cats, long naps and baking.

Firdaus Zulkifli is part of a team of change makers at Genovasi who aspire to make Malaysia a better place through education and design. He believes that all Malaysians (himself included) should strive to be part of the solution and help solve problems instead of just complaining.

Michael Teoh is the Founder-Strategist of Thriving Talents, a company that consults and trains youth talents in companies and universities to succeed in life and work. He is an awardee of Prestige’s “Top 40 Under 40” Awards for Malaysians and was recognised as one of the world’s leading enterprising youths by the Global Entrepre­neurship Week in 2011.

Alia Aishah Shahrir is the daughter of a Penangite father and Muarian mother. She believes she has inherited the bark of the north and the bite of the south. Law student by day, and documentary enthusiast by night, she is a realistic optimist with a soft spot for comparative theology and philosophy.

Hannah Kam holds a Bachelor of Laws degree from the London School of Economics & Political Science. She completed the Bar Professional Training Course at BPP University, London, and is a member of the Honourable Society of the Middle Temple. She believes that the promotion of a culture of mutual acceptance, respect and tolerance will secure a safe and vibrant Malaysia for generations to come.

Sunildave Parmar is a passionate social entrepreneur who believes that moderation is the way forward. He embraces the saying that “every drop of water makes a mighty ocean” and wants the young generation to work towards a harmonious future.

Tan James Anthony is a budding entrepreneur who loves flying. Tan is the first and youngest Malaysian to fly solo around the world in a single-engine Cessna 210 Silver Eagle aircraft, a feat which he accomplished over a 50-day period starting on March 28.

Kanyakumari Damodaran is passionate about issues relating to mental health which are terribly downplayed in Malaysian society. Being a “reasonable feminist” she is also into matters concerning gender bias and women’s rights, and would like to shed light on some of these issues which have been in the dark for far too long.

Numerous studies show that eating excess amounts of added sugar can have harmful effects on metabolism, leading to insulin resistance, belly fat gain, high triglycerides and small, dense LDL cholesterol… to name a few (1, 2).

There is also a plethora of observational studies showing that the people who eat the most sugar are at a much greater risk of getting type 2 diabetes, heart disease and even cancer (3, 4, 5).

Sugar is also fattening, partly because it doesn’t get registered in the same way as other calories by the brain, making us eat more. It also has adverse effects on hormones related to obesity (6, 7, 8, 9).

Not surprisingly, studies show that people who eat the most sugar are at a high risk of future weight gain and obesity (10).

3. People Gain Lots of Weight During The Holidays, Which They Never Get Rid Of

Most people don’t gain weight overnight… it happens slowly, over years and decades.

But the rate is uneven throughout the year and spikes dramatically during the holidays, a time when people tend to binge on all sorts of delicious holiday foods and eat much more than their bodies need.

The problem is that sometimes people don’t lose all the weight back. They might gain 3 pounds, but only lose 2 after the holidays are over, leading to slow and steady weight gain over time (11).

In fact, a large percentage of people’s lifetime weight gain can be explained just by the 6 week holiday period.

4. The Obesity Epidemic Started When The Low-Fat Guidelines Were Published

7. Increased Food Variety Contributes to Overeating and Weight Gain

The graph above shows a study where rats were split in 3 groups… one group got regular healthy chow, the second group got one type of junk food, but the third got multiple types of junk food at the same time (20).

As you can see, the rats eating one type of junk food gained more than the ones eating rat chow, but the rats eating multiple types of junk food gained the most… by far.

There is some evidence that this is true in humans as well. When we have more types of foods available, we eat more… and sometimes more than our bodies need (21).

Sunday, November 16, 2014

When many Americans think of Germany, images of WWII soldiers and Hitler often come to mind. But what many people don’t realize is that Germany is the industrial powerhouse of Europe, and is a leading manufacturer of goods for export to developing Asian nations. We don’t hear about the superiority of German engineering in Volkswagen commercials for nothing!

Working Hours Mean Working Hours

In German business culture, when an employee is at work, they should not be doing anything other than their work. Facebook, office gossip with co-workers, trolling Reddit for hours, and pulling up a fake spreadsheet when your boss walks by are socially unacceptable behaviors. Obviously, in the United States these behaviors are frowned up on by management. But in Germany, there is zero tolerance among peers for such frivolous activities.

In the BBC documentary “Make Me A German“, a young German woman explained her culture shock while on a working exchange to the UK.

“I was in England for an exchange… I was in the office and the people are talking all the time about their private things… ‘What’s the plan for tonight?’, and all the time drinking coffee…”

She was quite surprised by the casual nature of British workers. Upon further discussion, the Germans reveal that Facebook is not allowed in the office whatsoever, and no private email is permitted.

Goal-Oriented, Direct Communication Is Valued

German business culture is one of intense focus and direct communication. While Americans tend to value small talk and maintaining an upbeat atmosphere, Germans rarely beat around the bush. German workers will directly speak to a manager about performance reviews, launch into a business meeting without any ‘icebreakers’, and use commanding language without softening the directives with polite phrases.Whereas an American would say, “It would be great if you could get this to me by 3pm,” a German would say, “I need this by 3pm”.

When a German is at work, they are focused and diligent, which in turn leads to higher productivity in a shorter period of time.

Germans Have a Life Outside Work

Germans work hard and play hard. Since the working day is focused on delivering efficient productivity, the off hours are truly off hours. Because of the focused atmosphere and formal environment of German businesses, employees don’t necessarily hang out together after work. Germans generally value a separation between private life and working life.

The German government is currently considering a ban on work-related emails after 6pm, to counter the accessibility that smartphones and constant connectivity give employers to their employees. Can you imagine President Obama enacting such a policy in the United States?

To occupy their plentiful Freizeit, most Germans are involved in Verein (clubs); regularly meeting others with shared interests in their community. Common interests in Germany include Sportvereine (sports clubs), Gesangvereine (choirs or singing clubs), Musikvereine(music clubs), Wandervereine (hiking clubs), Tierzuchtvereine (animal breeding clubs – generally rabbits/pigeons) and collectors’ clubs of all stripes. Even the smallest village in Germany will have several active Vereinen to accommodate residents’ interests. Rather than settling in for a night of TV after work, most Germans socialize with others in their community and cultivate themselves as people.

Germans also enjoy a high number of paid vacation days, with many salaried employees receiving 25-30 paid days (the law requires 20). Extended holidays mean families can enjoy up to a month together, renting an apartment by the seaside or taking a long trip to a new, exciting city.

Business Respects Parenthood

Germany’s system of Elternzeit (“parent time” or parental leave) is the stuff of fantasy for most working Americans. The United States does not currently have laws requiring maternity leave, while Germany has some of the most extensive parental protection policies in the developed world. The downside of these maternity leave benefits is that employers may avoid hiring women (with the fear that they will take advantage of the extensive benefits), and German boardrooms are consistently male-dominated at a higher rate than other developed nations, although the government is working to eradicate this trend. The financial benefits of staying home (from both Elternzeitand Elterngeld or parents’ money programs) are often too good to pass up for German mothers, and can lead to stagnant or non-existent careers.

Since “at will” employment does not exist in Germany, all employees have contracts with their employer. Parents who have been gainfully employed for the previous 12 months are eligible for Elternzeit benefits, which include up to three years of unpaid leave with a “sleeping” contract. The employee is eligible to work part-time up to 30 hours while on leave, and must be offered full-time employment at the conclusion of the parental leave. Parents may also choose to postpone up to one year of their leave until the child’s 8th birthday. Either parent is eligible for parental leave, and many couples make the choice based on financial considerations.

In addition to the preservation of the employee’s contract, the state will pay up 67% of the employee’s salary (with a cap of 1800 Euros per month) for 14 months. Parents may split the 14 months however they choose. These benefits apply equally to same-sex couples.

Have you picked your jaw up off the floor yet?

Put Some German In Your Office

The German work culture is very different from the average American office, but there are certainly lessons to be learned from our German counterparts. The diligent focus Germans bring to their working life is to be admired. Separating work from play can help us lead a more balanced life; putting the phone down after hours gives us a mental break from stressing about work, and we can return to the office refreshed in the morning. When it’s time to get something done, closing Facebook and turning off push notifications helps keep our minds quiet and the flow steady. Direct conversation can lead to increased efficiency, and more clarity of communication among team members.

Americans often equate longer hours with increased production and superior work ethic, but examining the German model makes one wonder: When it comes to time at work,maybe less really is more!

About Me

Born in Penang, speaks English, Malay, Hokkien & some Tamil. Managing Director and founder of zubedy (m) sdn bhd. Graduated from University Malaya and was in marketing for a multinational before setting up zubedy in 94. www.zubedy.com

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#NoFreeRides

A promise made in 2001

I intend to ADD VALUE to everyone and anything that I come to interact with and make the world a better place.

As this is an unending journey, I will never achieve my dreams … not in their fullest form. They are too far away in the idealistic world... but,

" The quest of truth will set you free, even if you never catch up with it".

I am one of those dreamers who have found a practical formula of living for today (compartmentalization) and try to achieve parts of my dreams a moment at a time, part by part. It is okay to die without achieving all the lofty dreams, as the spirit will be passed on to others, who are dreamers too.

I also plan to be rich, very rich! Not for the money but for the use of money as a platform to help me achieve my ideals. God willing, you will see advertisements in the near future communicating universal values and spirituality by ZUBEDY the Brand. (check out http://www.zubedy.com/) Encourage schools and libraries and sponsor the poor's basic needs of food, shelter and education.

I hope to live to a century or two with healthy living, modern medicine and God's permission. Lead a full life, have many children. But not necessarily sired by me. Travel the world to witness God's creation and be at awe with the creativity that greets us wherever and whenever we turn. I want to smell all the fragrance in the world be it the stink of the squatters in Mumbai or the pleasing scent of devotional flowers at a Balinese lebaran.

And to know that each experience has a purpose which is to ADD VALUE to the living, the dead and the unborn.

Children of Indonesia

Taken on the way to Puncak

Children of Bario

On the way to the only working phone line!

Children of Sabah

On the way to Mersilau

Children of Cambodia

At Angkor Thom

Children of Penang

At Pak Ali's house

Children of the zubedys

my nephews and nieces

Beautiful Women Series

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Beautiful Women Series

Six

Let us learn about each other's religion, culture and way of life

We know too little about each other’s traditions, way of life and beliefs.

In fact many amongst us may not even know about our own spiritual traditions, scripture and core religious foundation. Most times we delegate our thinking to our religious teachers and later complain about how they go about doing their job.